Q.Explain the interrelationship between industry, commerce and trade.

Industry, commerce and trade are not independent topics but three connected stages of the same economic process, from production to the final consumer. …

Industry, commerce and trade together form a single, continuous economic chain that runs from the production of goods to their final consumption, and each stage depends on the ones before and after it.

Industry is the starting point of this chain. Primary industry extracts raw material and natural resources from nature or breeds it through genetic industries, and secondary industry — through manufacturing and construction — converts that raw material into finished or semi-finished goods. Without industry, there would be no goods at all for commerce and trade to work with; the entire chain would have nothing to distribute.

Commerce is the connecting link between industry and the consumer. It is defined as the sum total of all activities concerned with the transfer of goods from producers to consumers, and it removes the hindrances of person, place, time, risk, finance and information that stand in the way of that transfer. Commerce is made up of two components: trade itself, and the auxiliaries to trade — transport and communication, banking and finance, insurance, warehousing, and advertising — each of which removes one of these specific hindrances.

Trade is the specific activity within commerce that involves the direct buying and selling of goods for a price, resulting in an actual transfer of ownership from the seller to the buyer. It may take the form of internal trade (wholesale and retail, within the country) or external trade (export, import and entrepot trade, across national borders). Trade removes the hindrance of persons by connecting someone who has goods with someone who wants them, but it depends on the auxiliaries to trade to actually move, finance, insure, store and advertise those goods along the way. …

Many students treat this as three separate definitions stitched together rather than genuinely explaining the interdependence — a strong essay answer must explicitly state what happens to the chain if any one stage (industry, the au …